RBI doubles 10-day Tue VRR quantum to INR 1.5 tln from INR 750 bln earlier
This story was originally published at 21:09 IST on 15 December 2025
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--[I] RBI changes 10-day VRR Tue quantum to INR 1.5 tln from INR 750 bln earlier
NEW DELHI – The Reserve Bank of India has doubled the quantum for the 10-day variable rate repo auction on Tuesday to INR 1.50 trillion from INR 750 billion earlier, the central bank said Monday. The reversal of the tender will take place on Dec. 26. At the 11-day auction on Monday, the central bank got bids for just INR 249.69 billion against the notified amount of INR 750 billion, leading to a rise in rates in the money market.
The auction takes place amid significant outflows for advance tax payments Monday and Tuesday, which may add up to around INR 1.5 trillion, according to market participants. The unusual length of the operations is likely to provide banks a liquidity buffer through the goods and services tax outflows around Dec. 20 as well.
As per the RBI's latest data, the central bank's net absorption from the banking system--a proxy for the liquidity surplus--was INR 1.84 trillion Thursday, up from INR 1.66 trillion Wednesday. The central bank's bond purchases of INR 1 trillion will add to banking system liquidity between Dec. 12 and Dec. 19.
The auction will be conducted on the RBI's core banking solution platform, e-Kuber between 0930 IST and 1000 IST. Successful bids will be accepted at their respective bid rates. Bids at or below the repo rate of 5.25% would be rejected. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Kabir Sharma
Edited by Akul Nishant Akhoury
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